Asian markets were mixed, with USD majors drifting and commodity FX slightly firmer. Fed Governor Waller stuck to his rate-cut script, while Japan’s CPI stayed above target. In China, a stronger yuan fix and surging equities capped a solid month.
- China stocks: Goldman Sachs raised its 12-month CSI 300 Index target to 4,900 from 4,500
- Pressure on Fed Gov Cook ramps up with pulte referring a third property transaction
- China official manufacturing and non-manufacturing PMIs will be published over the weekend
- Japan finmin Kato say he is aware of rising interest rates
- China state planner says household consumption capability, confidence needs to be improved
- US VP Vance confirms the end of Federal Reserve independence
- Australian Private sector credit (July 2025) +0.7% m/m (expected +0.6%)
- PBOC sets USD/ CNY central rate at 7.1030 (vs. estimate at 7.1274)
- Caterpillar expects a US$1.5bn to 1.8bn hit from tariffs (up from prior 1.3 to 1.5)
- UK Chancellor Rachel Reeves could boost revenues by imposing a windfall tax on banks
- Japan July Industrial Output -1.6% m/m (exp -1.0%) & Retail sales +0.3% y/y (exp +1.8)
- Tokyo August 2025 headline CPI 2.6% y/y (2.6% expected)
- Japan July Unemployment rate 2.3% (expected 2.5%, prior 2.5%)
- Fed’s Waller says interest rates will be cut toward neutral, only question is how quickly
- Trump’s Fed pick Stephen Miran hearing to be September 4, US Senate Banking Committee says
- Fed’s Waller says the time has come to move US interest rates lower
- Financial Times:Canada does not expect Donald Trump to drop all his tariffs on the country
- New Zealand August consumer confidence down 2.9% m/m in August (Prior -4.1%)
- Iran’s foreign minister hits back at France, Germany and United Kingdom
- Powell pivot boosts equities; SocGen expects 100bps cuts and higher markets ahead
- investingLive Americas FX news wrap 28 Aug: USD continues the decline started yesterday
- Brazil plans to sign a trade agreement with Mexico this time next year
- Trump official announces ‘transitory’ taxes for the next six months
It was a mixed session for regional equities and major FX in Asia. EUR/USD and GBP/USD edged lower, while AUD, NZD and CAD found a modest bid.
Federal Reserve Governor Christopher Waller, seen as a contender for the Fed chair role under Trump, stuck to his recent script of backing rate cuts, flagging September as the starting point for easing. In other Fed-related news, Pulte referred a third property transaction for review.
Japan’s August CPI was broadly in line with forecasts, with core-core slightly above expectations and still above the Bank of Japan’s 2% target. Consumer inflation has now held above 2% for more than three years. USD/JPY traded a contained 146.80–147.10 range.
In China, the People’s Bank of China has lifted the CNY fixing by 0.65% through August, the biggest monthly shift since September 2024. The onshore CSI 300 is up around 10% this month, with turnover on track to hit a record.
Asia-Pac
stocks:
- Japan
(Nikkei 225) -0.25% - Hong
Kong (Hang Seng) +0.66% - Shanghai
Composite +0.16% - Australia
(S&P/ASX 200) -0.11%
This article was written by Eamonn Sheridan at investinglive.com.